The global artificial intelligence market was valued at approximately USD 196.63 billion in 2023 and is expected to grow at a compound annual growth rate (CAGR) of 36.6% from 2024 to 2030. This remarkable growth is largely driven by continuous research and innovation from major tech companies, which are advancing the adoption of sophisticated technologies across various industry sectors, including automotive, healthcare, retail, finance, and manufacturing. For example, in December 2023, Google LLC launched "Gemini," a large language AI model that comes in three different sizes: Gemini Nano, Gemini Pro, and Gemini Ultra. One of the standout features of Gemini is its native multimodal capability, which distinguishes it from competing models.
Artificial intelligence is emerging as a transformative force in the evolving digital landscape. Major tech players, including Amazon.com, Inc.; Google LLC; Apple Inc.; Facebook; International Business Machines Corporation (IBM); and Microsoft, are making significant investments in research and development (R&D) related to AI, thereby boosting the overall market capitalization of artificial intelligence. These companies are focusing on making AI more accessible for various enterprise applications, which is essential for enhancing customer experiences and strengthening their positions within the framework of artificial intelligence industry 4.0.
Gather more insights about the market drivers, restrains and growth of the Artificial Intelligence Market
A key factor driving the acceleration of innovation in AI is the increased accessibility to historical datasets. As data storage and retrieval costs have become more manageable, healthcare institutions and government agencies are creating unstructured datasets that are accessible for research purposes. This availability of rich datasets, ranging from historical rainfall patterns to clinical imaging, is empowering researchers. Next-generation computing architectures, coupled with access to these comprehensive datasets, are enabling information scientists and researchers to innovate at an unprecedented pace.
End-use Segmentation Insights
The advertising and media segment led the market in 2023, accounting for the largest revenue share. This success can be attributed to the increasing adoption of AI marketing strategies, which have gained substantial momentum. For instance, in January 2022, Cadbury launched an initiative that allowed small business owners to create their advertisements for free using an AI tool that featured the face and voice of a celebrity.
Looking ahead, the healthcare sector is expected to capture a significant market share by 2030. The healthcare segment is categorized based on various use cases, including robot-assisted surgery, reduction of dosage errors, virtual nursing assistants, identification of clinical trial participants, management of hospital workflows, preliminary diagnosis, and automated image diagnosis.
In addition, the banking, financial services, and insurance (BFSI) segment encompasses applications such as financial analysis, risk assessment, and investment or portfolio management solicitations. Artificial intelligence has made notable inroads into the BFSI sector due to the rising demand for risk and compliance applications, as well as regulatory and supervisory technologies (SupTech). Authorities are increasingly leveraging AI-based insights in SupTech tools to examine FinTech applications in financial markets for regulatory, supervisory, and oversight purposes, thereby identifying potential benefits that AI can bring to these areas.
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